External and Internal Assessment of Boeing

Introduction2

Internal Environment2

PEST Analysis3

Political factor4

Economic factor4

Social factor5

Technological factor5

Porter Model6

Bargaining Power of Buyers:6

Bargaining Power of Suppliers:7

SWOT Analysis8

Strengths8

Weaknesses9

Opportunities10

Threats10

Value Chain Analysis11

References12

External and Internal Assessment of Boeing

Introduction

Boeing is one of the world's leading aerospace companies. The company was founded in 1916 by William E. Boeing. It is the largest satellite manufacturer. It is also actively working for military aircrafts worldwide. It shares strong market leadership with Airbus in the large commercial planes business. Boeing was formerly located in Seattle. It's headquarter has now moved to Chicago. The company produces aircrafts that have the capacity to carry 107 to 433 passengers (Boeing, 2013). Boeing is one of the largest exporters in US. Its revenues have increased by $28.5 billion in 2006. It showed 33% growth in terms of the production efficiency. The company faced major difficulties in 1990s regarding the high speed Sonic Cruise. The project failed despite formulation of long term strategy. It was due to mismanagement and efficiency issues in the productions processes of Boeing. The company has been able to achieve the success again. It has also launched the revolutionary B787 Dreamliner. It is built with composite materials consisting of carbon fiber (Boeing, 2013).

Boeing has been under many expansion phases. It has also merged with McDonnell Douglas in 1997. Boeing offers diversified business units that include commercial, defense, space, capital and technological services. It is also listed in Dow Jones Industrial Average (Boeing, 2013).

Internal Environment

Boeing has formulated long term strategy of people working as a whole. The strategy is also depicted in vision of the company. It defines Boeing as a place where people work together as a global enterprise for aerospace leadership. The vision of the company is aligned to the mission. The mission follows the principles of becoming a leader. The leadership is defined to be based on quality, profitability and terms of quality and growth. Boeing has presented vision 2016 which aims to identify its core competencies. This vision and mission statements serves as objectives for employees and stakeholders. The company places great emphasis on objectives which are customer focused approaches and integration of large scale systems. The company has adopted the outsourcing technique to achieve its objectives (Boeing, 2013).

Boeing's aims to maintain its leadership position in global markets. The corporate strategy of Boeing reflects the leadership focus for military and civil sector services. The management of company critically analyses the potential crisis situation. Thus, it wants to maintain a balance of services leading to a mixed portfolio. Boeing, like its competitor Airbus, adopts the diversification strategy in its product portfolio. The special focus is placed on B787 project while the functional strategy of Boeing commercial planes is also monitored (Boeing, 2013).

PEST Analysis

The aircraft manufacturing industry in USA has been established as a global market from a long time. The market is still growing at a constant rate. It has reached the size of $ 63 billion revenues in 2006. US airlines industry is highly competitive as it has high entry barriers and heavy investments are ...